7 U.S.C. § 1943 | Limitations on amount of operating loans

(a)

In general

The Secretary shall make or insure no loan under this subchapter—

(1)

section 1925 of this title that would cause the total principal indebtedness outstanding at any one time for loans made under this subchapter to any one borrower to exceed, in the case of a loan other than a loan guaranteed by the Secretary, $400,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the unpaid indebtedness of the borrower on loans under the sections specified in that are guaranteed by the Secretary); or

(2)

for the purchasing or leasing of land other than for cash rent, or for carrying on any land leasing or land purchasing program.

(b)

Inflation percentage

For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—

(1)

the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year; exceeds

(2)

the average of such index (as so defined) for the 12-month period that immediately precedes the 12-month period described in paragraph (1).

(c)

Microloans

(1)

In general

Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans.

(2)

Limitations

The Secretary shall not make or guarantee a microloan under this subsection that would cause the total principal indebtedness outstanding at any 1 time for microloans made under this subsection to any 1 borrower to exceed $50,000.

(3)

Applications

To the maximum extent practicable, the Secretary shall limit the administrative burdens and streamline the application and approval process for microloans under this subsection.

(4)

Cooperative lending pilot projects

(A)

In general

Subject to subparagraph (B), during each of the 2014 through 2023 fiscal years, the Secretary may carry out a pilot project to make loans to community development financial institutions, as the Secretary determines appropriate—

(i)

to make or guarantee microloans consistent with the terms provided under this subsection; and

(ii)

to provide business, financial, marketing, and credit management services to microloan borrowers.

(B)

Requirements

Prior to making a loan to an institution described in subparagraph (A), the Secretary shall—

(i)

review and approve—

(I)

the loan loss reserve fund for microloans established by the institution; and

(II)

the underwriting standards for microloans of the institution; and

(ii)

establish such other requirements for making a loan to the institution as the Secretary determines necessary.

(C)

Eligibility

To be eligible for a loan under subparagraph (A), an institution described in subparagraph (A) shall, as determined by the Secretary—

(i)

have the legal authority necessary to carry out the actions described in subparagraph (A);

(ii)

have a proven track record of successfully assisting agricultural borrowers; and

(iii)

have the services of a staff with appropriate loan making and servicing expertise.

(D)

Oversight

Not less often than annually, on a date determined by the Secretary, an institution that has a loan under this paragraph shall provide to the Secretary such information as the Secretary may require to ensure that the services provided by the institution are serving the purposes of this subsection.

(E)

Limitation

The Secretary shall not make more than $10,000,000 in loans under this paragraph in any fiscal year.

Pub. L. 87–128, title III, § 313Aug. 8, 196175 Stat. 310 Pub. L. 90–488, § 9Aug. 15, 196882 Stat. 771 Pub. L. 92–419, title I, § 122Aug. 30, 197286 Stat. 665 Pub. L. 95–334, title I, § 116Aug. 4, 197892 Stat. 426 Pub. L. 98–258, title VI, § 604(a)Apr. 10, 198498 Stat. 139 Pub. L. 105–277, div. A, § 101(a) [title VIII, § 806(b)]Oct. 21, 1998112 Stat. 2681 Pub. L. 110–234, title V, § 5102May 22, 2008122 Stat. 1146 Pub. L. 110–246, § 4(a)June 18, 2008122 Stat. 1664 Pub. L. 113–79, title V, § 5106(a)Feb. 7, 2014128 Stat. 837 Pub. L. 115–334, title VDec. 20, 2018132 Stat. 4671(, , ; , , ; , , ; , , ; , , ; , , , 2681–39; , , ; , title V, § 5102, , , 1908; , , ; , §§ 5201–5203, , .)

Editorial Notes

Codification

Pub. L. 115–334Sept. 30, 2023Sept. 30, 2024Pub. L. 115–334 section 102(a) of Pub. L. 118–22 section 9001 of this titleThe authorities provided by each provision of, and each amendment made by, , as in effect on , to continue, and authorities to be carried out, until the later of , or the date specified in the provision of, or amendment made by, , see , set out in an Extension of Agricultural Programs note under .

Pub. L. 110–234 Pub. L. 110–246 Pub. L. 110–234 section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .

Amendments

Pub. L. 115–334, § 5201(1)2018—Subsec. (a)(1). , substituted “$400,000” for “$300,000”, “$1,750,000” for “$700,000”, and “2019” for “2000”.

Pub. L. 115–334, § 5201(2)(A)Subsec. (b)(1). , substituted “July” for “August”.

Pub. L. 115–334, § 5201(2)(B)August 31, 1996Subsec. (b)(2). , substituted “that immediately precedes the 12-month period described in paragraph (1)” for “ending on ”.

Pub. L. 115–334, § 5202Subsec. (c)(2). , substituted “subsection to any 1 borrower” for “chapter to any 1 borrower”.

Pub. L. 115–334, § 5203Subsec. (c)(4)(A). , substituted “2023” for “2018” in introductory provisions.

Pub. L. 113–792014—Subsec. (c). added subsec. (c).

Pub. L. 110–246, § 51022008—Subsec. (a)(1). , substituted “$300,000” for “$200,000”.

Pub. L. 105–277 section 1925 of this title1998— inserted section catchline, designated existing provisions as subsec. (a), inserted heading, substituted “this subchapter—” for “this subchapter”, in introductory provisions, realigned margin of par. (1) and substituted “$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the unpaid indebtedness of the borrower on loans under the sections specified in that are guaranteed by the Secretary); or” for “$400,000; or”, realigned margin of par. (2), and added subsec. (b).

Pub. L. 98–2581984— substituted “$200,000” and “$400,000” for “$100,000” and “$200,000”, respectively.

Pub. L. 95–3341978— substituted provisions setting forth criteria for Secretary to make or insure loans under this subchapter for provisions setting forth criteria for Secretary to make loans under this subchapter.

Pub. L. 92–4191972— substituted “$50,000” for “$35,000”.

Pub. L. 90–4881968— struck out from item (1) the proviso which limited the amount to be used for loans which would cause the indebtedness of any borrower to exceed $15,000 to 25 per centum of the sums made available for loans.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–234 Pub. L. 110–246May 22, 2008Pub. L. 110–234 section 4 of Pub. L. 110–246 section 8701 of this titleAmendment of this section and repeal of by effective , the date of enactment of , see , set out as an Effective Date note under .